NY ends fiscal year nearly $1 billion below initial projections

The state’s tax collections were $926.3 million below what was originally projected in the 2010-11 budget, although it was slightly higher than what was anticipated as of March 3, according to state Comptroller Thomas DiNapoli’s March cash report, released today. The general fund ended the fiscal year March 31 $19.1 million over March 3 projections, it said.

Revenue collections for the fiscal year were $1.2 billion below financial-plan projections made March 3, but that was offset by spending that was $1.3 billion less than projected, the report said.

Collections were lower than expected largely because anticipated federal and miscellaneous receipts were less. Spending was less primarily because spending on local-assistance grants and capital projects was less than expected, according to DiNapoli.

“The Enacted Budget took significant steps to address the state’s chronic structural deficit with mostly recurring actions rather than the temporary resources used last year,” DiNapoli said. “However, some risks remain. Revenue lagged projections throughout the year, and there are still significant shortfalls in certain areas, such as business taxes. It is important that the Enacted Budget Financial Plan reflect realistic projections. The state’s persistently slim financial margins necessitate close monitoring and attentive cash management.”

The state’s all funds receipts (which includes federal funding) ended the fiscal year at $133.3 billion, 5.2 percent, or $6.6 billion, higher than in 2009-10, while all funds spending increased 6.3 percent to $134.8 billion.

General Fund receipts (including transfers from other funds) of $54.4 billion through March 31 were 3.6 percent, or $1.9 billion, higher than collections from the same period last year. General Fund receipts were $343.5 million higher than updated projections from March.